Middle Class Tax Relief Spurs Economic Growth

Economic Affairs Secretary Ajay Seth highlights significant income tax cuts aimed at boosting demand and growth. The Union Budget offers relief to the middle class, exempting individuals earning up to Rs 12.75 lakh annually from taxes. Predicted nominal GDP growth is pegged at 10.1% for the next fiscal year.

Economic Affairs Secretary Ajay Seth has announced a major decision to provide substantial income tax relief, a move anticipated to boost demand and economic growth in the upcoming fiscal year. The finance ministry has predicted a nominal GDP growth of 10.1%.

Finance Minister Nirmala Sitharaman revealed significant tax reductions over the weekend, which will exempt those earning up to Rs 12.75 lakh annually from taxes, benefiting approximately 1 crore taxpayers. However, this initiative is expected to impact the exchequer by Rs 1 lakh crore.

The Union Budget aims to counter domestic challenges with strategies to mitigate them, according to Seth. He emphasized the importance of these tax cuts for the middle class to encourage consumption and investment, essential components for achieving higher growth.

(With inputs from agencies.)